Poll Analysis

Corporations are reportedly hoarding their profits overseas because under America’s current tax system, overseas profits are taxed at a 35 percent rate when they are repatriated. According to the Wall Street Journal, American corporations have an estimated $ 1 trillion in overseas profits that these multinationals are reportedly willing to repatriate if they are given a one-time break from the 35% tax.... >>>

Corporations are reportedly hoarding their profits overseas because under America’s current tax system, overseas profits are taxed at a 35 percent rate when they are repatriated. According to the Wall Street Journal, American corporations have an estimated $ 1 trillion in overseas profits that these multinationals are reportedly willing to repatriate if they are given a one-time break from the 35% tax.

However, these corporations may get an even better deal if reports are true that the U.S. Treasury is considering exempting overseas profits from taxation altogether. That would be great news to MNCs. But the implications of this could be disastrous to Americans in general. Exempting overseas profits from taxation is as good as incentivizing American corporations to shift jobs and productions outside of the U.S. which would be bad news to both unemployed and employed Americans. Moreover, that move could also result in higher taxes for average Americans and companies that operate strictly in the U.S. only.